03/28/1994 09:00 AM Senate FIN

  SB 289:        An Act making  appropriations to satisfy  the                 
                 agreed-upon   monetary   terms   of   certain                 
                 collective bargaining agreements  for certain                 
                 public  employees;  and   providing  for   an                 
                 effective date.                                               
                                                                               
                 Commissioner  Nancy   Usera,  Department   of                 
                 Administra-tion,  spoke  in  support  of  the                 
                 bill.  Discussion was had by Senators Rieger,                 
                 Kelly, Kerttula, and  Sharp regarding  health                 
                 insurance   and   cost   of  living   issues.                 
                 Commissioner  Usera was in  support of SB 289                 
                 being  HELD  in   committee  until  4   other                 
                 contracts had been settled  for incorporation                 
                 into  this  bill.     SB  289  was   HELD  in                 
                 committee.                                                    
                                                                               
  SENATE BILL NO. 289:                                                         
                                                                               
       An Act making appropriations to satisfy the agreed-upon                 
       monetary   terms   of  certain   collective  bargaining                 
       agreements for certain public  employees; and providing                 
       for an effective date.                                                  
                                                                               
  Co-chair  Pearce  announced  that  SB  289  was  before  the                 
  committee.   She asked Commissioner  Usera to return  to the                 
  table.  At this  time, Co-chair Pearce said she  intended to                 
  hold the bill  and roll the  dollars into the budget  unless                 
  Co-chair Frank wished otherwise.                                             
                                                                               
  Commissioner Usera said she was in support of holding SB 289                 
  because   there  were   four  other   contracts   that  were                 
  outstanding.  The terms of  those agreements could be  added                 
  to this bill and it could serve  as a complete package.  She                 
  went on  to say that  an amendment covered  the confidential                 
  employees unit  and represented a  two year agreement.   She                 
  said  it  contained   consistencies  in  regard   to  health                 
  insurance  and overtime  standards.   She  said  that a  2.5                 
  percent cost of  living increase was allowed  effective July                 
  1995 and  provided for a three  year hiatus for  any cost of                 
  living  increase.    The  $9,000  fiscal note  provided  for                 
  incidental costs associated with the contract.                               
                                                                               
  In  answer to  Senator  Kelly, Ms.  Usera  said it  differed                 
  between  bargaining units  but  the cost  to  the state  for                 
  health insurance was about $423.50 a month per employee.                     
                                                                               
  In answer  to Senator  Rieger, Ms. Usera  said the  contract                 
  provided  for  the  state  health  insurance  plan  but  the                 
  bargaining units  would have  the option  to choose  another                 
  plan within the same price  range.  She was pleased  to note                 
  that employees having to pay a small 5 percent co-pay amount                 
  had had a significant effect on cost containment.                            
                                                                               
  In answer to Senator Sharp, regarding  the fact there was no                 
  cap on  insurance, Ms. Usera  said the budget  process would                 
  keep that in  check.  Another conclusion with  the agreement                 
                                                                               
                                                                               
  was that there  was going to  be many  changes in regard  to                 
  health  insurance,   and  the  administration   needed  some                 
  flexibility.     A   state  employee   survey  shocked   the                 
  administration  with a  strong  choice towards  an insurance                 
  package.    Senator  Sharp voiced  his  opinion  that health                 
  insurance needed  a cap.  Ms. Usera said  there was a cap in                 
  the sense that if the union decided  to go to a trust, there                 
  was a limit set but when management was designing the health                 
  plan, there was not.                                                         
                                                                               
  Senator Rieger made  a statement regarding the  SBS account.                 
  He felt it was inevitable that eventually a basic plan would                 
  be   offered   to  employees   with   the  ability   to  add                 
  supplementals at the employee's expense.  Ms. Usera agreed.                  
                                                                               
  In answer to  Senator Kerttula, Ms.  Usera said that in  the                 
  last round of  bargaining, employees were willing  to forego                 
  wage increases or large cost of living increases in order to                 
  maintain an adequate health package.                                         
                                                                               
  In answer to Senator  Kelly, Ms. Usera spoke to  the impasse                 
  of one negotiation.  She said that after seventeen months of                 
  bargaining, mediation would be attempted on April 11.                        
                                                                               
  Co-chair  Pearce  announced that  SB  289 would  be  HELD in                 
  committee.